People stand outside a branch of IDBI Bank Ltd. in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Two Independent Directors Of IDBI Bank Quit

Two independent directors Ninad Karpe and S Ravi have resigned from the board of state-owned IDBI Bank days after the Central Bureau of Investigation filed an FIR in connection with Rs 600 crore loan given by the bank to former Aircel Promoter C Sivasankaran, his son and companies controlled by him.

Karpe and Ravi cease to be independent directors of IDBI Bank effective May 11 and May 12, respectively, an official said. These directors had informed the board, which took note of their resignations on Monday.

The case pertains to loans of Rs 322 crore and Rs 523 crore given to the companies of Sivasankaran, who was at the centre of Aircel Maxis probe for alleging that the then Telecom Minister Dayanidhi Maran had put pressure on him to sell his company to a Malaysian telecom tycoon, a case in which Maran brothers have been discharged by a special court.

The loans later turned non-performing assets.

The loan of Rs 322 crore was allegedly issued to Finland-based Win Wind Oy by IDBI Bank in October 2010 which turned NPA three years later, the CBI said in its FIR.

The CBI has named 15 bank officials who worked at senior levels at IDBI Bank in 2010 and 2014 when loans were sanctioned to the companies controlled by Sivasankaran in its FIR registered on a complaint from the Central Vigilance Commission.

Indian Bank Managing Director and Chief Executive Officer Kishor Kharat (who was then MD and CEO of IDBI Bank) and his counterpart in Syndicate Bank Melwyn Rego (then deputy managing director at IDBI Bank), along with then Chairman-cum-MD of IDBI Bank MS Raghavan have been named in the FIR.